Next says no-deal Brexit tariffs could save £15M to benefit shoppers
Category: #headlines  | By Nikita Chaurasia  | Date: 2019-03-23 |
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

Next says no-deal Brexit tariffs could save £15M to benefit shoppers

The latest move comes in the wake of the company’s increasing focus on web sales, as it is expected to close around 507 stores over the next 15 years

Next, the fashion retail giant, has announced that after a no-deal Brexit it could save up to £15M with benefits from lower trade tariffs, that could be passed on to the consumers.

Next’s Chief Executive, Lord Simon Wolfson mentioned that consumers are not aware of the daily swings in the political debate and their purpose is to provide them improvements in the cost price, in the form of best pricing.

Citing reliable sources, in February the retail sales showed an increment of 0.4% despite surveys suggesting there is a downfall in consumer confidence. Next had reported a 0.4% fall in pre-tax profits to £722.9m for the 12 months to the end of January. In high street sales, a 7.9% plunge was countered by a 14.7% increment in online revenues.

According to Lord Wolfson, there is no proof regarding the uncertainty that Brexit is affecting consumer behaviour in this sector or not. He claimed Brexit was showing very slight negative impact on the business.

Lord Wolfson said that despite the uncertainty, the economic fundamentals that are affecting consumer behaviour have refined so far, by improved job rates and low inflation.

The latest move comes in the wake of the company’s increasing focus on web sales, as it is expected to close around 507 stores over the next 15 years.

As per Next’s prospective the business’s future is focused on advancing in online sales but around half of the online orders are carried out through a click-and-collect service, with over 80% of returns being completed in store.

The main reason behind this is that every £1 business that is migrated to online costs an additional 6p to Next, which is resulting in undermined profits. Still, advancements in online sales are exponentially well while restructuring costs are set to stay for a while, but Next’s track record suggests that it can bring up the profits by the end of the phase.  

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Nikita Chaurasia     twitter

Nikita Chaurasia

Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creativ...

Read More..

More News By Nikita Chaurasia

Dr. Reddy’s becomes India’s second biggest drugmaker by sales

Dr. Reddy’s becomes India’s second biggest drugmaker by sales

By Nikita Chaurasia

Dr. Reddy's Laboratories Ltd. and Cipla Ltd. surpassed Aurobindo Pharma to rank as the 2nd and 3rd largest drug manufacturers in India by sales in the three months that ended on September 30. This was the first change in the pecking order of the ...

UK’s business confidence drops to its lowest point since 2009

UK’s business confidence drops to its lowest point since 2009

By Nikita Chaurasia

According to recent data, business confidence in the UK dropped to 18% in October, which was its lowest level in at least 13 years. In contrast, however, net balances of confidence stood at 28% in June and 56% in February, according to Accenture and ...

Attero aims to increase recycling capacity, plans for IPO in 2025

Attero aims to increase recycling capacity, plans for IPO in 2025

By Nikita Chaurasia

Attero Recycling, a firm that recycles electronic waste, is aiming to launch an initial public offering (IPO) in 2025, according to its Co-Founder and CEO Nitin Gupta. As per Gupta, the company is currently debating whether to list its shares in I...